The company plans to spend the fresh funds on further automation of its flagship tech feature Dynamic SIP, CashRich said in a statement.

The CashRich app was launched in mid-2017 by Sougata Basu, who previously worked with Tata Steel. According to the company, Dynamic SIP is an improved version of the Systematic Investment Plan (SIP) of a mutual fund and it follows billionaire investor Warren Buffett’s advice, "Be fearful when others are greedy and greedy when others are fearful”. Basu said, “Though this advice is logical, it is rarely implemented. Retail investors often panic during market crisis, and fail to capitalise on investment opportunities due to psychological reasons. Dynamic SIP uses automation to implement this advice.”

Dynamic SIP aims to guide retail investors in a systematic way to allocate their money in both fixed income and equity. The model considers a user’s risk profile (behavioural finance aspects) and not just relative market valuations.

In February, Mumbai-based Fincash.com raised Rs 1 crore ($150,000) from a group of angel investors. The startup offers its users an online platform that helps investors transact as well as monitor their investments in mutual funds, wealth management products and other investments.

Other startups that have ventured into the online sale of financial products include Scripbox, Upwardly and RupeeVest.

Rival Paytm Money also builds investment and wealth management products for its users, all of which are delivered through a mobile application. Paytm Money claims to have already partnered 30 asset management companies that cover over 94% of the industry’s assets under management. It supports investing from over 190 banks through auto-pay mandates and net banking.

Users can opt to invest as little as Rs 100 through SIPs or put in higher amounts through mutual fund schemes.

Paytm Money claims to offer only direct plans of mutual funds that come with lower expense ratio due to zero distribution fees or commissions. The investment service is completely free for users.